Stock Fundamental Analysis and Chan Theory Trading System

Problem

Fundamental screening and technical timing are often kept separate. A balance sheet filter may identify a company, but the trader still lacks a repeatable entry checklist. Chan Theory terms are also easily used as scattered signals, making it hard to review why a buy point was chosen.

How It Works

The skill combines value analysis with Chan Theory into one workflow:

• Fundamental framework: It organizes checks around ROE, ROA, gross margin, net margin, revenue growth, profit growth, debt ratio, and operating cash flow, then adds valuation context using PE, PB, and PEG.
• Chan Theory structure: It breaks price movement into fractals, strokes, segments, centers, divergence, and the three buy/sell point types, including rising, falling, expanding, and converging center states.
• Strategy templates: It maps value speculation, center-breakout, and bottom-divergence setups into the same report, linking financial criteria, valuation percentile, volume-price behavior, and entry logic.

The output resembles an analysis memo: define the center range and type, check MACD and volume for divergence, then fill in position size, entry range, stop-loss, take-profit, and expected holding period.

Limits

This is a research scaffold, not an execution system. Data quality, chart timeframe, inclusion rules, and divergence interpretation still require manual verification. The tools mentioned, such as East Money, Tonghuashun, TDX, Lixingren, and SEC EDGAR, point to human-assisted analysis. Treat the templates as decision checkpoints, not guaranteed trading signals.